Used EV salary sacrifice scheme launched to help manage decline in RVs

A used electric vehicle (EV) salary sacrifice scheme has been launched by Tusker to protect a dramatic decline in residual values (RVs).

Used plug-in stock is being supplied through its own risk fleet when cars come to the end of their existing contract or are subject to an early termination.

The move comes after used EV values have fallen by half (50%) over the past 24 months, with Fleet News revealing how leasing companies, with large plug-in fleets, have been exposed to the losses.

Trade body the British Vehicle Rental and Leasing Association (BVLRA) has warned that the UK’s vehicle leasing and rental industry is facing an “existential threat”, because of the collapse in used EV values. 

How much EV portfolios have been starting to bite as vehicles are defleeted in greater numbers has been illustrated in the financial performance of some leasing companies.

In February, vehicle leasing giant Ayvens reported a 22.2% drop in pre-tax profits year-on-year, down from £1.42bn to £1.1bn. Figures suggested a £341 million year-on-year decline in used car sales, with Ayvens blaming falls in RVs.

Zenith’s annual financial results, for the year ending March 31, 2024, published in July, showed turnover was £788.4m, up 16.1% year-on-year, from £679m the previous year. However, adjusted gross profit was £134.4m, down 8.5% year-on-year, from £147m.